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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Net Asset Value, Total Expense Ratio and Pricing of Units

A scheme has an NAV of Rs 40 per unit and an exit load of 1% on redemption within one year. An investor redeems 500 units after six months. What amount will the investor receive, ignoring other charges?

The investor receives Rs 19,800. Gross redemption is 500 units at Rs 40, which is Rs 20,000, and the 1% exit load of Rs 200 is deducted because redemption occurs within one year, so the payout is Rs 19,800.

  1. ARs 19,800Correct
  2. BRs 20,000
  3. CRs 20,200
  4. DRs 19,600

Explanation

Redemption value = 500 x 40 = Rs 20,000. Exit load = 1% of Rs 20,000 = Rs 200. Net payout = Rs 19,800. Rs 20,200 wrongly adds the load, and Rs 20,000 ignores it.

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